That’s an awesome question. What do you mean when you say it has to compete against a bunch of other priorities? I think LTC is a very viable form of payment, and I for one, would switch.
Litecoin’s biggest pros: low transaction fees (lower than PayPal and credit cards) and it is international. (You are also paying real people when you pay the transaction fee rather than paying a commercial entity.)
My site (bitcoinsuperstore.us) supports LTC payments and I hope people continue to expand what can be bought/paid for with LTC.